The adoption of electronic payments and their frequent use is thought of as a first step for broader financial use for traditionally unbanked individuals and merchants. The purpose of this report is to analyze the design, implementation, and efficacy of many incentives implemented by different types of stakeholders around the...
Chakravorti and Kobor provide a framework to study the creation and adoption of innovations by payment providers and processors. The authors identify several motivating factors for banks and nonbanks to invest in payment innovations. In addition, they discuss the evolutionary process of payment innovations from inception to commoditization and recognize...
Chakravorti and Emmons model side payments in a competitive creditâcard market. If competitive retailers absorb the cost of accepting credit cards by charging a higher goods price to everyone, then someone must subsidize convenience users of credit cards to prevent them from defecting to merchants who do not accept cards...